Vietnam central bank to keep policy supportive, open to rate cuts
Central bank deputy governor Dao Minh Tu says business and manufacturing activities are recovering
VIETNAM can still meet its economic growth target this year despite the extensive damage caused by Typhoon Yagi and is open to the possibility of rate cuts, central bank deputy governor Dao Minh Tu said on Thursday (Oct 17).
Tu told a media briefing that business and manufacturing activities were recovering.
“The central bank will continue to pursue supportive monetary policies during the rest of the year,” Tu said.
“We will keep policy rates at least at the current levels, and are open to the possibility of further rate cuts.”
The central bank reported bank lending had risen 9 per cent as of September 30 from end-2023.
Vietnam’s economic growth largely relies on bank lending, and the central bank is targeting credit growth of 15 per cent this year.
Vietnam’s GDP rose 7.4 per cent in the third quarter from a year earlier, the strongest pace in two years, as growth in exports, industrial production and foreign investment offset the initial effects of typhoon-related flooding and damage in September.
Average consumer prices in the first nine months of this year rose 3.88 per cent from a year earlier, below the government’s targeted inflation cap of 4.5 per cent for the year. REUTERS
Share with us your feedback on BT's products and services
